Telstra (ASX:TLS) has announced plans to create a new standalone infrastructure business, Telstra InfraCo, as part of the telco’s 2022 strategy.
According to an announcement to shareholders on 20 June, Telstra’s InfraCo will “drive performance and set up optionality” post the National Broadband Network (NBN) rollout.
Telstra InfraCo will be launched on 1 July as a wholly owned standalone infrastructure business unit with its own CEO reporting to Telstra CEO Andrew Penn.
It will comprise Telstra’s NBN Co commercial works activities and Telstra Wholesale, including the management of Telstra’s more than 200 wholesale customers.
The new business unit will also comprise of the telco’s fixed network infrastructure which includes data centres, non-mobile related domestic fibre, copper, hybrid fibre-coaxial (HFC), international subsea cables, exchanges, poles, ducts and pipes.
“As technology innovation is increasingly relying on connectivity, the role of telecommunications infrastructure is becoming more important,” Penn said. “There is virtually no technological innovation happening today that does not rely on a high quality, reliable, safe and secure telecommunications network.”
Telstra InfraCo services will be sold to Telstra, wholesale customers and the company behind the NBN rollout NBN Co. The unit will employ 3,000 staff and is expected to have annual revenues of about $5.5 billion and EBITDA (earnings before interest, tax, depreciation and amortisation) of about $3 billion.
The new business unit will reinforce the discipline with which capital allocation occurs across the group, the company stated.
“Telstra InfraCo will provide significant optionality
Article source: https://www.arnnet.com.au/article/642690/inside-telstra-new-infrastructure-business-plans/